Rishabh Parakh
Almost all the taxpayers pay their taxes well before the end of the financial year i.e. 31st March. Especially in case of salaried employee it gets deducted by way of TDS and paid in regular instalments round the year. But when it comes to filing the return, many times taxpayers miss the deadline of 31st July to file the same. As per I-T Act; a tax return may be furnished any time before the expiry of two years from the end of the financial year in which the income was earned. Let’s understand what happens in case you don’t file your returns before 31st July.
Interest Penalty: If you have some outstanding tax liability arising out of income from other sources or due to change in jobs as seen in my previous article and tax is still due even after deducting advance tax and TDS. In this scenario, interest penalty will be applicable @1% per month u/s 234A and part thereof up to the date of filing of the return apart from the other interest amounts as applicable u/s 234B & 234C.
Late/belated return cannot be revised: A return is called a Belated Return if the same is filed after the due date. You cannot revise a belated return at a later stage. And a belated return can be filed within a period of one year from the end of the relevant assessment year or completion of assessment whichever is first.
Carry forward losses: Filing your return beyond a deadline will not allow you to carry forward your losses like long-term or short-term capital losses on Shares. But when it comes to carry forward of losses on house property, the same can be carried forward even if the Income Tax return is filed after 31st July.
Delay in getting Tax Refund: Your claim for refund will get delayed and you may also tend to lose interest on refund u/s 244A as delay in filing will be attributable to you.
Section 271F Penalty: If you do not file your return within a period of one year from the end of relevant assessment year then Assessing officer may levy a discretionary penalty of Rs 5000. For example, there will be no penalty if the return of income for the previous year ended 31st March, 2013 is filed by 31st March, 2014. If it is filed after that, the officer may levy this penalty which is mostly not exercised.
How to file your returns after 31st July: The procedure remains same as mentioned in my previous detailed article on “How to file Income Tax returns online” except you have to mention this return as a Belated Return and select section code “12” in the I-T return form. Salaried individuals who mostly do not have any outstanding tax liability (i.e. apart from what is deducted out of their salary) and also don’t have any losses to be carry forward can file returns even after 31st July, 2013.
(Rishabh Parakh is a chartered accountant and a founder director of Money Plant Consulting, a leading Investment & Tax advisory service provider in Pune.You may mail your queries to him at
rishabhca@gmail.com)
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